In the first seven months of the year, the number of new car registrations increased by 1.4% year-on-year, according to Statec. Internal combustion engines are in decline, while electric models are on the rise.
With 29,777 new registrations between January and July 2025, the Luxembourg car market showed a slight increase of 1.4% (29,360 units in 2024) over the same period a year earlier.
While we are still far from the record levels of 2019, data on new registrations are increasingly showing a clear trend towards electrification.
Strong growth for hybrids
In detail, the engine type that saw the strongest growth was the non-rechargeable hybrid. With 8,863 new registrations between January and July, this engine type posted a 43% increase year-on-year, ahead of petrol engines, which accounted for 7,802 new registrations, down 15% year-on-year. This significant drop has allowed new registrations of 100% electric vehicles to close the gap. Cars running solely on electricity accounted for 7,437 units, a slight decrease of 3.3% year-on-year.
This growth in non-rechargeable hybrids shows that motorists seem to be increasingly moving towards electrification that does not require a charging station.
It should also be noted that, with a 6% increase over one year, plug-in hybrids also experienced a strong upward trend. Unsurprisingly, diesel continues its decline with a 19.2% drop over one year and 3,141 new registrations.
In terms of brands, the Luxembourg market continues to favour German brands known for their premium quality. Volkswagen remains the most popular brand among motorists, followed by BMW and Mercedes. Skoda and Renault complete the top four.
Green is in vogue
The colour green symbolises hope and renewal, as well as freshness and the environment. Should we see this as a sign? In any case, it is the colour that has seen the strongest growth over the past year, with a 58% increase in new registrations with green bodywork.
However, across all new registrations, the three most popular colours are, in order: grey (down 1% year-on-year), black (up 2.2% year-on-year) and white (down 8.5% year-on-year). The latter could well be overtaken by blue, currently in fourth place, which has seen an 11.3% increase year-on-year. In fifth place, red is down 18.2%.
Used cars are increasingly attracting buyers
It should be noted that the used car market is much more dynamic than the new car market. During a recent interview on Radio 100.7, Manuel Ruggiu, COO of SNCA, said that used car registrations have grown more than twice as fast as new car registrations this year, with growth of +3.5% compared to +1.4% for new cars. This trend can be explained in particular by the uncertain economic climate, the continuing high prices of new cars and perhaps also by the introduction this year of a £1,500 bonus for the purchase of a used electric car.
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